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Guy comes in today with an alphabet return, A-B-C-D-E (but no F) and says "I usually do my own, but this time I sold a lot and bought two rent houses. It's just too complicated." BB: Whaddaya do? He: I sell insurance. BB: You can read insurance policies? He: Sure. BB: You can do taxes.

I dunno Bart. I always thought my brain could hold enough information to understand taxes or insurance - but not both at the same time - it would explode.

Sounds like a profitable client.

An insurance agent who actually reads insurance policies? Wow.

I also have a plumber who can get his F150 to run on ketchup.....Remember BB, there are some that think they are rocket surgeons...

Better than our Congresspeople!

I'm surprised he didn't say the return is probably very easy for you. Yeah, do you want to wait or go out and get a cup of coffee and a bagel and come back. This is going to cost him, especially for a new client. Have the defibrillator ready.

You know, it's the first corp of the year and I forgot that I have the software set to not autobalance the Sch L so it didn't fill in retained earnings. I just went back in and entered the negative $10K in Sch L for the unapprop R.E, and then Drake filled out the M-2 including line 8. I don't know why it wouldn't complete the M-2 because of that, but now it's filling in those lines. I guess that was my whole problem, because the program was leaving lines blank and not completing the math. Now Sch L shows $10K in common stock and negative $10K in r.e.

Sounds right to me....One washes the other out...Books closed...

Thanks for the info FDYN.

Now I see it -- the extra digits in the MFJ table. Yes, you were right to let them know, Abby. And, there's nothing like that new car smell, FDNY. I had a brand new (1,000 miles) loaner from the Subaru dealer for a few days and really enjoyed that new car smell.

Not enough to make a difference, but living in MA I will have a stress outlet very soon.

Does it make you high?

Did you notice the typos in the MFJ 2016 tax table? I already let them know. No big deal. We know what they meant.

Yes, it's a pilot program between the IRS and several payroll companies to combat identity theft. https://tax.thomsonreuters.com/media-resources/news-media-resources/checkpoint-news/daily-newsstand/irs-continuing-to-expand-w-2-verification-code-program/

I got back 5 this pm. Was getting worried.

I believe the $10,000 would be a non-dividend distribution. Distribution to extent of capital stock is basis to shareholder. Then distribution to extent of Retained Earning is dividend income. Remaining distribution is liquidating dividend.. That is how it would appear on the 1099-DIV and how I believe it would shake out on the 1120. So to answer your question - the liquidating distribution does not necessarily tie to the M-2.

Good Girl....And You're welcome...

Married couples who work and don't choose to withhold at the single rate will owe. If one spouse has a low wage, they never have enough withheld. I wish they would let people choose a flat % instead of having to Married but withhold at higher single rate with 0 allowances and $x additional tax. That's just too complicated. I tell clients they need x% withheld and they ask me how to do that, so I send them to paycheck city or do it for them.

The employer has several ways to pay a bonus (Per Pub 15). Some are easier for the employer (adding it to the next regular check, what most will do) and some are more accurate for the employee. Sounds like the employer did what most do, and the employee did not recognize the consequences. Employer did nothing wrong. Employee has to be aware that the proper deposit amount through the year (via withholding or other means) is their personal responsibility. The calculation which is likely best for the employee is too complicated for most to figure out... and employees HATE it when they get a bonus with any withholding... Get many who ask how to give a bonus with no withholding. This means employers will always take the easy way, and not use the annual; method, or the maximum method. Your situation is something I hear OFTEN from employers. They get a complaint form an employee that the employer did not withhold enough. I have to point out the employer has a simple (but complicated) requirement, and it is not to make sure the employee does not owe, or get a refund... Sounds like a good way to increase off season business, offer a mid or 3/4 year withholding review. Roll it into the prior year fee so it appears "free" the next year? Not too far back, the withholding tables were overly :"heavy". Employees who claimed the obvious would get relatively large refunds every year. One of the Bush presidents took advantage, and lowered the withholding to something close to accurate (at least for single earning households), and called it tax relief. I remember having to claim double dependents to get close to even, then having to claim one less than actual to get even. (Now I self manage, and withhold zero until December, but not many have that option.)

<Payroll hat> PUB 15 is what employers MUST follow, for the last valid W4 the employee provides. Whether or not it meets the needs of the employee is up to the employee to determine. Employers have enough to worry about and have no business delving into or discussing whether or not the withheld amount will accomplish what the employee is hoping to accomplish. </Payroll hat> If someone ends up owing, the preparer likely can offer advice as to the estimated total liability based on estimated earnings for the next year. If the person is not making any other tax deposits besides withholding, it is easy to divide liability by paydays per year. That amount, if not what is withheld already, can be achieved by creating and submitting a new valid W4, with an amount in the additional withholding area. While not proper, many will set their W4 as married and a high number of allowances, and try to get their employer to essentially withhold a fixed amount via the "additional" withholding field on the W4. Some will use a W4 which results in zero withholding, and make regular deposits on their own. Some will do a combination, where they check their liability before the end of year, and make a deposit just before end of year (me) if needed. (I am not fond of loaning money to anyone for free, so I seek no refund, and want to owe just below the under withholding threshold.)

Have you reviewed the withholding tables in Pub 15? Probably one reason the high earners owe is that their withholding is based solely on their W2 earnings. In my experience often the high earners also have high levels of interest, dividends and capital gains.

I send them with whatever information I have. Lots of times you can find addresses online - especially for people who are (or who claim to be) running a business. Yelp, white pages online, etc. In the ssn field,leave blank or put "refused". I have never seen the IRS demand retroactive 28% backup withholding, but I *have* seen letters stating every new check must have that. Funny how oftentimes a client telling their vendor they are required to withhold 28% magically makes those w-9's appear. One client, years ago, had one recalcitrant vendor but they just kept paying anyway. I changed their QuickBooks vendor's info to print the check out to "NO MORE checks until W-9 received!" and the office lady did not know how to fix it so they were stuck. Worked like a charm in that instance, and I still chuckle over it.

Look at it as a positive. They long ago forced you to work as their unpaid data entry clerk. So becoming an auditor is a promotion.